Visakhapatnam

A heavy load off the back of Vizag shipyard

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Succeeds in finding a buyer for half-finished bulk carrier at last

After facing problems with regard to sale of the partially built bulk carrier due to the company which ordered it running into financial trouble, the Hindustan Shipyard Limited has finally found a private party willing to take it under ‘as is where is’ condition.

After consulting Goodearth Maritime Limited (GML), the Chennai-based firm, and legal experts separately, HSL, a Ministry of Defence Enterprise, is on the verge of signing an agreement. Refusing the name the firm, HSL Chairman and Managing Director Rear Admiral (retired) L.V. Sarat Babu told The Hindu that the private party was ready to tow the vessel at its own expense.

He said the bulker had occupied vital space in the outfitting jetty. After completing 70% of work, GML had failed to release the amount towards completed work so as to enable HSL to finish the remaining part of construction.

GML had placed an order with the premier shipbuilding yard for the construction of four 30,000 tonne DWT and six 53,000 DWT bulk carriers under the Trader and Diamond Series. Most of the ships under the project were delivered by the HSL as per original contract.

Thorny issue

Though HSL had made a turnaround by earning net and operational profit in the past four years, the 53,000 bulk carrier had turned into a thorny issue for it. It had sounded out the Navy also to explore the possibility of disposing it of. At one point out time, HSL wanted to dismantle and sell the ship as scrap.

However, the plan was dropped as one of the provisions in the sale deed mentioned that if required the fate of the half-finished ship due to any situation beyond one’s control should be decided in consultation with GML.

As per the present deal arrived at by HSL after taking GML into confidence, the private party interested in buying it might tow it to a Third World country, complete the remaining work and float it out to sell it at a premium, sources in the industry said.

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Printable version | Dec 12, 2019 7:44:50 PM | https://www.thehindu.com/news/cities/Visakhapatnam/a-heavy-load-off-the-back-of-vizag-shipyard/article28764062.ece

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